The New Zealand Government has confirmed it will end the fees-free university scheme in the upcoming Budget, following comments made by NZ First leader Winston Peters that effectively revealed the decision ahead of the official announcement.
According to 1News, Finance Minister Nicola Willis said 2026 would be the final year students completing their studies could access fees-free support.
The scheme was introduced under the previous Labour government and originally covered up to NZ$12,000 in tuition fees for the first year of tertiary study or the first two years of work-based training.
After taking office, the coalition Government changed the policy so that it instead funded the final year of tertiary study.
Peters revealed the Government’s plans during an interview on Newstalk ZB on Friday when asked whether the programme would be cut in the upcoming Budget.
“I’ll give you a Budget leak right here, right now, the answer is yes,” Peters said.
“We are going to reshape and repurpose it for the trades and all sorts of industries where we do need it and where we can get a far better payback for our money and pay far less money doing it,” as quoted by 1News.
In a statement to 1News, Willis later confirmed the change.
“This is the last year in which students completing their studies will be eligible for fees free”.
“We will have more to say about this in due course,” as quoted by 1News.
ACT leader and Deputy Prime Minister David Seymour criticised the policy, saying it had failed to significantly improve access to tertiary education for disadvantaged students despite costing hundreds of millions annually.
“It reduced some students' loans, but the same students graduated into a country with more Government debt, including extra debt from tire-kickers who took the free year and never finished their course,” 1News has quoted.
Seymour said ACT had opposed the scheme from the beginning and welcomed its removal.
“We came into Government to cut wasteful spending so the country has a sustainable future. Today's announcement by the Finance Minister confirms we are headed in the right direction,” as quoted by 1News.